Prosecutors Seek Detention Warrants for Eight Petrochemical Executives Over Alleged Trillion-Won Price-Fixing Scheme

[Financial News] Prosecutors investigating allegations of price fixing involving petrochemical products worth trillions of won have moved to secure the custody of eight executives and other officials from major South Korean petrochemical companies.
According to legal sources on the 14th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office, headed by Chief Prosecutor Na Hee-seok, sought detention warrants that day for eight people, including OCI CEO Kim Yoo-shin, former PKC CEO Jang Young-soo, and a PKC sales division head identified by his surname Bae, on charges of violating the Fair Trade Act.
Prosecutors suspect that seven companies—LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, LOTTE Fine Chemical, PKC and UNID—coordinated in advance for years over the timing and scale of price increases for eight petrochemical products, including polyvinyl chloride (PVC), plasticizers, caustic soda and hydrochloric acid.
Prosecutors believe the companies fixed prices by exploiting instability in the supply and demand of naphtha, a key raw material for petrochemical products, amid the war in the Middle East, and reaped illicit profits worth trillions of won.
PVC is a synthetic plastic produced using naphtha and other raw materials. It is widely used in construction materials, pipes and wire insulation. Plasticizers are chemical additives that make PVC softer and more flexible.
On the 5th of last month, prosecutors raided the offices of the companies and the homes or workplaces of people connected to the case in connection with the price-fixing allegations, securing relevant materials.
Then, on the 10th, they summoned OCI CEO Kim, former PKC CEO Jang and an LG Chem executive as suspects to investigate the price-coordination process and whether company executives were involved.
[email protected] Choi Eun-sol Reporter